11H1FY18 Results

H1 FY18 RESULTS PRESENTATIONNovember 22, 2017

22H1FY18 Results

SAFE HARBOUR

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Security and Intelligence Services (India) Limited(the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase orsubscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. Nooffering of securities of the Company will be made except by means of a statutory offering document containing detailed information about theCompany.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makesno representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness andreasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that youmay consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, whichare subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. Therisks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ourability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highlyskilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actionsregulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in caseany of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time byor on behalf of the Company.

H1 FY18RESULTS

3H1FY18 ResultsRESULTS UPDATE - H1FY18

2,703 crREVENUES

141 crEBITDA

81 crPAT

28.3%ROCE

Rs11.6EPS

EPS

34.4% YoY

52.7% YoY

170.7% YoY

136 bps YoY

159 %YoY

20.8% organic growth*

Strong increase in EBITDA margin* from 4.6% to 5.2%

Net debt down from 221 cr to 91 cr

FM business 2.5X bigger*

Market leader across three attractive business services segments - Security, Facility Management and Cash Logistics*YoY growth

H1 FY18RESULTS

4H1FY18 ResultsRESULTS BY BUSINESS LINE - H1FY18

Strong organic growth across all segments with margin improvement

Cash Logistics

145

154

H1FY17 H1FY18

-6.3

1.3

H1FY17 H1FY18

+6.4%

Rs in cr

H1 FY18RESULTS

Security - India

735

1012

H1FY17 H1FY18

44

72

H1FY17 H1FY18

+37.8% +65.9%

Security - Australia

+19% +14.7%

1,152

1,373

47

54

H1FY18H1FY17 H1FY17 H1FY18

EBITDARevenues EBITDARevenues

6.0% 7.2%4.1% 4.1%

Facility Management

125.1

318

H1FY17 H1FY18

1

13.9

H1FY17 H1FY18

+154% +1046%

1.0%

4.4%

-4.4%

0.9%

55H1FY18 ResultsEBITDA SUMMARY BY BUSINESS LINE

Indian security business now accounts for 51% of group EBITDA; FM showing a steep growth - contributes 10% of group EBITDA

48%

51%

1%

Security - India Security - Australia

Facility Management

EBITDA share – H1FY17

India Business

52%38%

10%

Security - India Security - Australia Facility Management

EBITDA share – H1FY18

India Business

49% 61%

H1 FY18RESULTS

6H1FY18 Results$25 bn MARKET OPPORTUNITY BY 2020*

*Frost and Sullivan, July 2017; Freedonia, July 2017

Facility Management

• IFM program specialization for key segments –hospitals, pharma, FMCG

• Scale MEP/ Hard FM services pan India

• Tap B2G, Railways

SecurityAustralia

• Extensive use of tech for differentiated cost effective solutions

• Leverage security Patrols combined offering

SecurityIndia• Lead industry with

Man-Tech solutions approach

• Extensive use of tech for productivity, service quality assurance and scale improvement

Cash Logistics

• ATM Portfolio review for route optimization

• Focus on new services beyond ATMs

Market Size

Rs. 27,200 cr$ 2.46 BnRs. 1.16 lakh cr Rs. 6,500 cr

Market Growth CAGRCAGRCAGR CAGR19.5%5.4%20.9% 17.8%

#1Security

Facility Management

Cash Logistics

H1 FY18RESULTS

7

Q2 FY18 RESULTS BY BUSINESS LINE

88H1FY18 ResultsSECURITY - INDIA

PAT margin almost doubling from 1.9% to 3.6% driven by higher EBITDA, reduced interest costs, Sec. 80JJAA impact

389

523

Q2FY17 Q2FY18

Revenues EBITDA PAT

24.3

37.2

Q2FY17 Q2FY18

7.3

18.7

Q2FY17 Q2FY18

#2 and fastest growing security providerWide reach across 630 districts

Security assessment, solution design, integration and ongoing security program management

India’s first end-end home security system

Cost effective solution for banks and retail

Comprehensive range of electronic security solutions

Electronic security on opex model (eSaas)Pioneering Man-Tech solution sales pan-India

Rs.

In c

rs

102,839Trained security personnel

151Branches

11,518Sites

Operating leverage driving margin increase from 6.3% in Q2FY17 to 7.1% in Q2FY18

Organic growth of 34%, strong volume growth of 15.6%

+34% +52.6% +155.6%

H1 FY18RESULTS

99H1FY18 ResultsSECURITY - AUSTRALIA

590

773

Q2FY17 Q2FY18

23

29

Q2FY17 Q2FY18

12.1

34.2

Q2FY17 Q2FY18

Rs.

In c

rs

# 1 security company in Australia, among only 2 national players

Security assessment, solution design, integration and ongoing security program mgt.

Largest mobile patrol business in Australia

Asset protection, loss prevention, electronic surveillance and monitoring services

Revenues EBITDA PAT

31% record revenue growth, Organic growth

of 10.4% - 5X Australia GDP growth

26% EBITDA growth, further margin

improvement expected on SXP integration

PAT margin more than doubling from 2%

to 4.4%

+31% +26% +183%

H1 FY18RESULTS

6,344Security officers

33Branches

#1 Aviation security

1010H1FY18 ResultsFACILITY MANAGEMENT

71% revenue growth with 19% organic growth

EBITDA margin more than doubling from 1.8 % to 4.8%, reaping scale benefits

PAT margin moved from -1% to 3.6% driven by growth, DTSS synergy, Sec. 80JJAA impact

96

164

Q2FY17 Q2FY18

1.7

7.8

Q2FY17 Q2FY18 -0.9

5.9

Q2FY17 Q2FY18

Integrated FM solutions including soft services, MEP and industrial production support

Focus on South and West markets

JV with global market leader Terminix, USA.

Pest control, fumigation and termite control

Integrated FM solutions – specialist in B2G segment

Focus on North and East markets

Rs.

In c

rs

Revenues EBITDA PAT

+71% +358.6%

H1 FY18RESULTS

39,389Trained staff

59Branches

2,685Customer Sites

1111H1FY18 ResultsCASH LOGISTICS

73

80

Q2FY17 Q2FY18-4

5.3

Q2FY17 Q2FY18

-9.4 -4.1

Q2FY17 Q2FY18

Axis Title

9% revenue growth despite demonetization impact

Positive EBITDA margin of 6.6% result of route optimization and ATM portfolio churn

Losses reduced by half

• JV with a global leader in cash management - Prosegur, Spain

• Offers ATM replenishment, CIT and Door Step Banking (DSB) and cash processing solutions for banks and retail

• SIS –Prosegur (North and East focused), SISCO – South and West focused) – Maximising synergy through infra sharing and mixed routes

Rs.

In c

rs

Revenues EBITDA PAT

+9%

H1 FY18RESULTS

2,467Secured cash vans

88%Cash in circulation/ pre-demonetisation levels

10.1%Cash/ GDP ratio post demonetisation

12

H1 FY18Financial Information

1313H1FY18 ResultsFINANCIAL STATEMENTS

Income statement (Rs. In crores)

Q2FY18 Q2FY17 Y-o-Y H1FY18 H1FY17 Y-o-Y

Revenue from operations 1,460.0 1,076.1 35.7% 2,703.5 2,011.6 34.4%

EBITDA 74.1 49.0 51.3% 141.1 92.4 52.7%

Share of net profit /(loss) of Associates

(2.5) (4.7) 46.3% (7.6) (7.5) -2.4%

Depreciation and amortisation expense

14.1 7.2 96.0% 25.2 14.4 75.7%

Other Income 24.5 2.1 1080.5% 27.9 4.7 496.9%

Finance costs 22.0 17.5 25.8% 44.8 28.3 58.4%

Profit before Tax 59.9 21.7 176.6% 91.4 47.0 94.3%

Tax expense 1.0 7.6 -86.4% 10.7 17.2 -37.7%

Profit after taxes 58.9 14.1 318.4% 80.6 29.8 170.7%

Profit after tax % 4.0% 1.3% 3.0% 1.5%

EPS 8.51 2.15 295.9% 11.64 4.49 159.2%

Diluted EPS 8.37 2.15 289.4% 11.45 4.49 155.0%

Balance sheet (Rs. In crores)

30 Sep 2017 31 Mar 2017

Non current assets 1,060.7 674.2

Current assets 1,235.1 923.5

Total assets 2,295.8 1,597.7

Non current liabilities 395.7 171.3

Current liabilities 795.2 585.2

Total liabilities 1,190.8 756.6

Net assets 1,105.0 841.1

Net debt 91.3 256.6

Equity 1,013.7 584.6

Capital employed 1,105.0 841.1

H1 FY18RESULTS

Income Statement Balance Sheet

Particulars Particulars

Rs. In crs

159% increase in EPS; Balance Sheet recapitalised for growth

1414H1FY18 ResultsNET DEBT MOVEMENT

Rs. 165 crore reduction in Net debt

Rs. In crs

H1 FY18RESULTS

1515H1FY18 ResultsH1FY18 RESULTS – KEY NUMBERS

revenue growth

PAT growth

EBITDA growth

organic growth

PAT margin

EBITDA margin

EPS growth

bps RONW increase

bps ROCE

H1 FY18RESULTS

34.4% 52.7% 170.7%

20.8%

159.2% 136

3.0%

632

5.2%

16H1FY18 Results

Growth Productivity & Margins

M&A Technology Return Ratios

CLOSING REMARKS

Solid H1 growth –sound run rate and

pipeline for H2 across all four business

segments

Low Net Debt -Balance Sheet

capacity for M&A

ROCE and EPS improvement on

track

Operating leverage in scaled businesses.

Rapid margin improvement in new

segments.

iOPS, SalesMaxx, ARK – extensive proprietary

technology boosting productivity. Major push on Man-tech, Alarm monitoring

and response.

H1 FY18RESULTS

CIN: U74140MH2010PTC204285

Mr. Pankaj ChhaochhariaEmail : pankaj.c@sgapl.netWebsite : www.sgapl.net

CIN: L75230BR1985PLC002083

Mr. Vamshidhar GuthikondaEmail : vamshidhar@sisindia.comWebsite : www.sisindia.com